Dubai is doubling down on efforts to fend off regional rivals trying to dethrone it as the Gulf’s top financial hub. Ruler Sheikh Mohammed bin Rashid launched a 100 billion dirham ($27.2 billion) expansion of the Dubai International Financial Centre on Tuesday, aiming to more than double the district’s footprint by 2040.
Nearly half will be office space, lifting pressure on a zone that is already operating at full capacity, Bloomberg reported. There will also be roughly 4,000 apartments, aimed at easing the long commutes for at least some of the area’s workforce. Around 48,000 people work in the DIFC today, and officials expect that to climb to 125,000 once the expansion is complete.
Dubai’s financial industry has surged since the pandemic, with asset managers, family offices, hedge funds, and private equity firms drawn by friendly regulation, low taxes, and a lifestyle that rivals global cities. But competition is intensifying. Abu Dhabi, Doha, Riyadh, and, to a lesser extent, Kuwait have more capital and want to lure the same bankers, consultants, and investors. This expansion is a clear signal that Dubai intends to defend its lead.